---
kind: "section"
citation: "26 U.S.C. § 7527A"
title: "26"
title_heading: "Internal Revenue Code"
number: "7527A"
heading: "Advance payment of child tax credit"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/7527A"
units:
  - "Subtitle F — Procedure and Administration"
  - "Chapter 77 — Miscellaneous Provisions"
---

# §7527A. Advance payment of child tax credit

- (a) **In general—** The [Secretary](/usc/26/7701.md?p=a-11-B) shall establish a program for making periodic payments to [taxpayers](/usc/26/7701.md?p=a-14) which, in the aggregate during any calendar year, equal the annual advance amount determined with respect to such [taxpayer](/usc/26/7701.md?p=a-14) for such calendar year. Except as provided in [subsection (b)(3)(B)](#b-3-B), the periodic payments made to any [taxpayer](/usc/26/7701.md?p=a-14) for any calendar year shall be in equal amounts.
- (b) **Annual advance amount—** For purposes of this section—
  - (1) **In general—** Except as otherwise provided in this subsection, the term “annual advance amount” means, with respect to any [taxpayer](/usc/26/7701.md?p=a-14) for any calendar year, the amount (if any) which is estimated by the [Secretary](/usc/26/7701.md?p=a-11-B) as being equal to 50 percent of the amount which would be treated as allowed under subpart C of part IV of subchapter A of [chapter 1](/usc/26/chstA/ch1.md) by reason of [section 24(i)(1)](/usc/26/24.md?p=i-1) for the [taxpayer](/usc/26/7701.md?p=a-14)’s [taxable year](/usc/26/7701.md?p=a-23) beginning in such calendar year if—
    - (A) the status of the [taxpayer](/usc/26/7701.md?p=a-14) as a [taxpayer](/usc/26/7701.md?p=a-14) described in [section 24(i)(1)](/usc/26/24.md?p=i-1) is determined with respect to the reference [taxable year](/usc/26/7701.md?p=a-23),
    - (B) the [taxpayer](/usc/26/7701.md?p=a-14)’s modified adjusted gross income for such [taxable year](/usc/26/7701.md?p=a-23) is equal to the [taxpayer](/usc/26/7701.md?p=a-14)’s modified adjusted gross income for the reference [taxable year](/usc/26/7701.md?p=a-23),
    - (C) the only children of such [taxpayer](/usc/26/7701.md?p=a-14) for such [taxable year](/usc/26/7701.md?p=a-23) are qualifying children properly claimed on the [taxpayer](/usc/26/7701.md?p=a-14)’s return of tax for the reference [taxable year](/usc/26/7701.md?p=a-23), and
    - (D) the ages of such children (and the status of such children as qualifying children) are determined for such [taxable year](/usc/26/7701.md?p=a-23) by taking into account the passage of time since the reference [taxable year](/usc/26/7701.md?p=a-23).
  - (2) **Reference taxable year—** Except as provided in [paragraph (3)(A)](#b-3-A), the term “reference [taxable year](/usc/26/7701.md?p=a-23)” means, with respect to any [taxpayer](/usc/26/7701.md?p=a-14) for any calendar year, the [taxpayer](/usc/26/7701.md?p=a-14)’s [taxable year](/usc/26/7701.md?p=a-23) beginning in the preceding calendar year or, in the case of [taxpayer](/usc/26/7701.md?p=a-14) who did not file a return of tax for such [taxable year](/usc/26/7701.md?p=a-23), the [taxpayer](/usc/26/7701.md?p=a-14)’s [taxable year](/usc/26/7701.md?p=a-23) beginning in the second preceding calendar year.
  - (3) **Modifications during calendar year—**
    - (A) **In general—** The [Secretary](/usc/26/7701.md?p=a-11-B) may modify, during any calendar year, the annual advance amount with respect to any [taxpayer](/usc/26/7701.md?p=a-14) for such calendar year to take into account—
      - (i) a return of tax filed by such [taxpayer](/usc/26/7701.md?p=a-14) during such calendar year (and the [taxable year](/usc/26/7701.md?p=a-23) to which such return relates may be taken into account as the reference [taxable year](/usc/26/7701.md?p=a-23)), and
      - (ii) any other information provided by the [taxpayer](/usc/26/7701.md?p=a-14) to the [Secretary](/usc/26/7701.md?p=a-11-B) which allows the [Secretary](/usc/26/7701.md?p=a-11-B) to determine payments under [subsection (a)](#a) which, in the aggregate during any [taxable year](/usc/26/7701.md?p=a-23) of the [taxpayer](/usc/26/7701.md?p=a-14), more closely total the [Secretary](/usc/26/7701.md?p=a-11-B)’s estimate of the amount treated as allowed under subpart C of part IV of subchapter A of [chapter 1](/usc/26/chstA/ch1.md) by reason of [section 24(i)(1)](/usc/26/24.md?p=i-1) for such [taxable year](/usc/26/7701.md?p=a-23) of such [taxpayer](/usc/26/7701.md?p=a-14).
    - (B) **Adjustment to reflect excess or deficit in prior payments—** In the case of any modification of the annual advance amount under [subparagraph (A)](#b-3-A), the [Secretary](/usc/26/7701.md?p=a-11-B) may adjust the amount of any periodic payment made after the date of such modification to properly take into account the amount by which any periodic payment made before such date was greater than or less than the amount that such payment would have been on the basis of the annual advance amount as so modified.
  - (4) **Determination of status—** If information contained in the [taxpayer](/usc/26/7701.md?p=a-14)’s return of tax for the reference [taxable year](/usc/26/7701.md?p=a-23) does not establish the status of the [taxpayer](/usc/26/7701.md?p=a-14) as being described in [section 24(i)(1)](/usc/26/24.md?p=i-1), the [Secretary](/usc/26/7701.md?p=a-11-B) shall, for purposes of [paragraph (1)(A)](#b-1-A), determine such status based on information known to the [Secretary](/usc/26/7701.md?p=a-11-B).
  - (5) **Treatment of certain deaths—** A child shall not be taken into account in determining the annual advance amount under [paragraph (1)](#b-1) if the death of such child is known to the [Secretary](/usc/26/7701.md?p=a-11-B) as of the beginning of the calendar year for which the estimate under such paragraph is made.
- (c) **On-line information portal—** The [Secretary](/usc/26/7701.md?p=a-11-B) shall establish an on-line portal which allows [taxpayers](/usc/26/7701.md?p=a-14) to—
  - (1) elect not to receive payments under this section, and
  - (2) provide information to the [Secretary](/usc/26/7701.md?p=a-11-B) which would be relevant to a modification under [subsection (b)(3)(B)](#b-3-B) of the annual advance amount, [including](/usc/26/7701.md?p=c) information regarding—
    - (A) a change in the number of the [taxpayer](/usc/26/7701.md?p=a-14)’s qualifying children, [including](/usc/26/7701.md?p=c) by reason of the birth of a child,
    - (B) a change in the [taxpayer](/usc/26/7701.md?p=a-14)’s marital status,
    - (C) a significant change in the [taxpayer](/usc/26/7701.md?p=a-14)’s income, and
    - (D) any other factor which the [Secretary](/usc/26/7701.md?p=a-11-B) may provide.
- (d) **Notice of payments—** Not later than January 31 of the calendar year following any calendar year during which the [Secretary](/usc/26/7701.md?p=a-11-B) makes one or more payments to any [taxpayer](/usc/26/7701.md?p=a-14) under this section, the [Secretary](/usc/26/7701.md?p=a-11-B) shall provide such [taxpayer](/usc/26/7701.md?p=a-14) with a written notice which [includes](/usc/26/7701.md?p=c) the [taxpayer](/usc/26/7701.md?p=a-14)’s [taxpayer](/usc/26/7701.md?p=a-14) identity (as defined in [section 6103(b)(6)](/usc/26/6103.md?p=b-6)), the aggregate amount of such payments made to such [taxpayer](/usc/26/7701.md?p=a-14) during such calendar year, and such other information as the [Secretary](/usc/26/7701.md?p=a-11-B) determines appropriate.
- (e) **Administrative provisions—**
  - (1) **Application of electronic funds payment requirement—** The payments made by the [Secretary](/usc/26/7701.md?p=a-11-B) under [subsection (a)](#a) shall be made by electronic funds transfer to the same extent and in the same manner as if such payments were Federal payments not made under this title.
  - (2) **Application of certain rules—** Rules similar to the rules of subparagraphs [(B)](/usc/26/6428A.md?p=f-3-B) and [(C)](/usc/26/6428A.md?p=f-3-C) of section 6428A(f)(3) shall apply for purposes of this section.
  - (3) **Exception from reduction or offset—** Any payment made to any individual under this section shall not be—
    - (A) subject to reduction or offset pursuant to subsection [(c)](/usc/26/6402.md?p=c), [(d)](/usc/26/6402.md?p=d), [(e)](/usc/26/6402.md?p=e), or [(f)](/usc/26/6402.md?p=f) of section 6402 or any similar authority permitting offset, or
    - (B) reduced or offset by other assessed Federal taxes that would otherwise be subject to [levy](/usc/26/7701.md?p=a-21) or collection.
  - (4) **Application of advance payments in the possessions of the United States—**
    - (A) **In general—** The advance payment amount determined under this section shall be determined—
      - (i) by applying [section 24(i)(1)](/usc/26/24.md?p=i-1) without regard to the phrase “or is a bona fide resident of Puerto Rico (within the meaning of [section 937(a)](/usc/26/937.md?p=a))”, and
      - (ii) without regard to [section 24(k)(3)(C)(ii)(I)](/usc/26/24.md?p=k-3-C-ii-I).
    - (B) **Mirror code possessions—** In the case of any possession of the [United States](/usc/26/7701.md?p=a-9) with a mirror code tax system (as defined in [section 24(k)](/usc/26/24.md?p=k)), this section shall not be treated as part of the income tax laws of the [United States](/usc/26/7701.md?p=a-9) for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated.
    - (C) **Administrative expenses of advance payments—**
      - (i) **Mirror code possessions—** In the case of any possession described in [subparagraph (B)](#e-4-B) which makes the election described in such subparagraph, the amount otherwise paid by the [Secretary](/usc/26/7701.md?p=a-11-B) to such possession under [section 24(k)(1)(A)](/usc/26/24.md?p=k-1-A) with respect to [taxable years](/usc/26/7701.md?p=a-23) beginning in 2021 shall be increased by $300,000 if such possession has a plan, which has been approved by the [Secretary](/usc/26/7701.md?p=a-11-B), for making advance payments consistent with such election.
      - (ii) **American Samoa—** The amount otherwise paid by the [Secretary](/usc/26/7701.md?p=a-11-B) to American Samoa under [subparagraph (A)](/usc/26/24.md?p=k-3-A) of section 24(k)(3) with respect to [taxable years](/usc/26/7701.md?p=a-23) beginning in 2021 shall be increased by $300,000 if the plan described in subparagraph (B) of such section [includes](/usc/26/7701.md?p=c) a program, which has been approved by the [Secretary](/usc/26/7701.md?p=a-11-B), for making advance payments under rules similar to the rules of this section.
      - (iii) **Timing of payment—** The [Secretary](/usc/26/7701.md?p=a-11-B) may pay, upon the request of the possession of the [United States](/usc/26/7701.md?p=a-9) to which the payment is to be made, the amount of the increase determined under clause [(i)](#e-4-C-i) or [(ii)](#e-4-C-ii) immediately upon approval of the plan referred to in such clause, respectively.
- (f) **Application—** No payments shall be made under the program established under [subsection (a)](#a) with respect to—
  - (1) any period before July 1, 2021, or
  - (2) any period after December 31, 2021.
- (g) **Regulations—** The [Secretary](/usc/26/7701.md?p=a-11-B) shall issue such regulations or other guidance as the [Secretary](/usc/26/7701.md?p=a-11-B) determines necessary or appropriate to carry out the purposes of this section and subsections [(i)(1)](/usc/26/24.md?p=i-1) and [(j)](/usc/26/24.md?p=j) of section 24, [including](/usc/26/7701.md?p=c) regulations or other guidance which provides for the application of such provisions where the filing status of the [taxpayer](/usc/26/7701.md?p=a-14) for a [taxable year](/usc/26/7701.md?p=a-23) is different from the status used for determining the annual advance amount.

## Source credit

(Added Pub. L. 117–2, title IX, § 9611(b)(1), Mar. 11, 2021, 135 Stat. 146.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable to taxable years beginning after Dec. 31, 2020, see section 9611(c)(1) of Pub. L. 117–2, set out as an Effective Date of 2021 Amendment note under section 24 of this title.

### Establishment of Advance Payment Program

Pub. L. 117–2, title IX, § 9611(c)(2), Mar. 11, 2021, 135 Stat. 150, provided that: “The Secretary of the Treasury (or the Secretary’s designee) shall establish the program described in section 7527A of the Internal Revenue Code of 1986 as soon as practicable after the date of the enactment of this Act [Mar. 11, 2021], except that the Secretary shall ensure that the timing of the establishment of such program does not interfere with carrying out section 6428B(g) as rapidly as possible.”